Renewable energy accounted for 71 per cent of India's new power generation in FY 24
May 03, 2024
New Delhi [India], May 3 : In India during FY 23-24, renewable energy (RE) contributed more than 70 per cent of the 26 GW (GigaWatt) of new power generated in the country.
India's total installed energy capacity has now reached 442 GW, with RE comprising approximately 33 per cent (144 GW) and hydro contributing 11 per cent (47 GW), according to the report by CEEW Centre for Energy Finance (CEEW-CEF).
The share of Coal in India's total installed capacity fell below the 50 per cent mark for the first time.
The report further highlights that solar energy, including both grid-scale and rooftop installations, continued to dominate India's RE capacity addition, constituting approximately 81 per cent (15 GW) of the total RE addition in FY24.
The wind capacity addition nearly doubled, reaching 3.3 GW compared to 2.3 GW in FY23. Additionally, nuclear capacity (1.4 GW) was added for the first time since FY17.
In line with India's ambitious renewable energy targets, RE auctions soared to a record high, reaching approximately 41 GW of auctioned capacity in FY24.
Furthermore, the report highlighted the conclusion of eight auctions with energy storage components, indicating a growing shift towards innovative power procurement formats.
"Around 95 per cent of India's targeted 50 GW annual RE bidding trajectory was met in FY24. Bids of 47.5 GW that were issued are approximately three times the RE capacity that has been added annually in recent years" said Gagan Sidhu, Director, CEEW-CEF.
The report also noted a rise in peak power demand, reaching a new high of 240 GW in FY24. Factors contributing to this included a fast-growing economy and weather anomalies such as lower-than-expected rainfall and above-normal temperatures.
"In renewable energy, FY24 saw several policy moves to shift gears beyond utility-scale RE. For instance, PM Surya Ghar: Muft Bijli Yojana was introduced to increase rooftop solar installation in the residential segment, which could result in the addition of 30 GW" said Riddhi Mukherjee, Research Analyst, CEEW-CEF.
The report also highlights that the amendments made by the Ministry of Power to the Electricity Rules of 2022, mandating the sale of un-requisitioned surplus power on exchanges, are expected to enhance supply-side liquidity and promote competitive prices on power exchanges.
